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Fortune or Fiction

Fortune or Fiction

Why the ‘Be Your own Banker’ concept is flawed

– Adam Niman, BSc, CLU

Fortune or Fiction

Why The ‘Be Your Own Banker’ Concept Is Flawed

Fortune or Fiction

Can you really get infinite income with a Participating Life Insurance policy? Adam Niman takes a deep dive in his latest e-book.

More About Adam Niman

Adam Niman (BSc, CLU) is a seasoned life insurance professional with over a decade of experience in the field. His focus is exclusively on insurance, and he advocates for keeping insurance and investments separate. This belief stems from his first-hand experience with failed investment-grade life insurance products from the 1970s, 80s, and 90s that were oversold to clients by well-intentioned advisors. As a Chartered Life Underwriter, Adam is committed to providing expert guidance to his clients and finding the best solution for their unique needs. He values open communication and is always available for a phone call or email, ensuring that his clients have peace of mind and a sense of security. Through his e-book and website, Adam is dedicated to educating clients on the importance of transparency and providing in-depth understanding of the insurance products they are considering.

Be Your Own Banker

“The essence of the process of Becoming Your Own Banker is YOU taking control of the entire banking function and creating a peaceful financial life for yourself, and generations to come”

R. Nelson Nash

The “Be Your Own Banker” and “Infinite Banking” concepts are a financial strategy that promotes the idea of taking control of one’s finances by using whole life insurance as a personal banking system. The concept was popularized by R. Nelson Nash in his book “Becoming Your Own Banker,” first published in 2000. The idea – use dividend-paying whole life insurance, aka “Participating Life Insurance”, to finance personal and/or business expenses, and effectively loan your own money, to yourself, and collect the interest. This is accomplished by borrowing against your insurance policy’s cash value, while continuing to earn dividends. The policyholder can then pay back the loan with interest, which goes back into the cash value of the policy, thus replenishing the funds available for future borrowing. This creates a cycle of borrowing and repayment, allowing the policyholder to have access to a source of financing that is independent of traditional banks and financial institutions. Advocates of the “Be Your Own Banker” concept argue that it provides a safe and secure way to save money, grow wealth, and finance personal or business expenses, while also providing tax benefits and asset protection. I believe the concept is complete fiction, and misrepresents what can be a great product.